By cutting through the clutter and providing a carefully selected list of brokers with minimal fees, low account minimums, and useful instructional tools, our list of the top stock brokers for beginners is able to aid investors.
The appropriate broker can offer you much more as a novice investor than just a place to execute trades. It may assist you in developing a strong investing foundation by acting as a teacher, advisor, and investment analyst. As your abilities and approach develop, it can also act as a lifelong portfolio co-pilot.
What does a broker of stocks do?
Stock brokers are individuals or businesses with the proper credentials to transact in stocks and other securities on stock exchanges. It used to be necessary for people to pay stock brokers to execute deals on their behalf if they wanted to invest directly in equities.
But thanks to internet stock brokers, what used to be a laborious, expensive transaction carried out over landlines can now be completed in a matter of seconds. Even better, many online brokerage accounts, like the ones listed below, offer commission-free stock trades, making those brokers’ fees a fraction of what full-service brokers once demanded for the same services.
1Fidelity
Fees: $0 per trade for online U.S. stocks and ETFs
Account minimum: $0
Promotion: Get $100, when you deposit $50 or more to start a new, qualified Fidelity account. Use code FIDELITY100. Limited time offer. Terms apply.
Pros
- Commission-free transactions in stocks, ETFs, and options.
- A wide range of sources for research.
- Strong client relations
- Index funds without expense ratios.
- Well regarded smartphone application.
Cons
- Broker-assisted trade cost is fairly expensive
Why you’ll like it
Fidelity provides zero trading costs, a choice of over 3,700 mutual funds with no transaction fees, outstanding research tools, and a top-notch trading interface. The cherry on top are its index funds with no fees and stellar reputation for customer service.
Fidelity offers a wide range of solutions for human support for hands-on learners. The broker’s customer service network offers over 200 branches for in-person support in addition to 24-hour phone, chat, and email support.
The educational materials offered by Fidelity stand out among those of rival companies. The Online Learning Center offers customers specialized learning resources catered to their investment preferences and behavior. The broker also provides traders with a ton of seminars, workshops, and videos to use.
2Merrill Edge
Fees: $0 per trade
Account minimum: $0
Promotion: Up to $600, when you invest in a new Merrill Edge® Self-Directed account.
Pros
- Solid independent research.
- With bank of America integrated.
Cons
- Less securities may be available for experienced traders.
Why you’ll like it
Merrill Edge offers competitive pricing, thorough research, and top-notch customer service. Customers of Bank of America, the parent business, will appreciate the intelligent integration and the convenience of only needing one login to access both accounts.
Merrill Edge gets top marks for their customer service. Customers have many ways to get in touch, including the ability to schedule an in-person appointment at a nearby Bank of America, 24/7 phone assistance, chat, email, and more.
Regarding Merrill’s instructional materials, the broker provides excellent material in a variety of formats, including podcasts, webinars, and even a sizable content library with more than 150 articles. Calculators for investing, planning for retirement, and charting personal finances are further resources.
3Vanguard
Fees: $0 per trade
Account minimum: $0
Promotion: None. There is currently no available promotion.
Pros
- Large selection of mutual funds
- Free trading in stocks, options, and ETFs.
- Leader in affordable funds.
Cons
- Merely a simple trading platform.
- Little data and research.
Why you’ll like it
For buy-and-hold and retirement investors, Vanguard is the king of low-cost investing. However, despite having a $0 trade commission, active traders will find that the broker falls short because it lacks a reliable trading platform.
Vanguard is a suitable choice for people who don’t require in-person or on-demand help because its primary support channels are phone and email (Monday through Friday, 8 a.m. to 8 p.m. Eastern time).
News articles, academic papers, films, and webcasts are all available as educational resources for beginning investors. Vanguard, like many other brokers on our list, provides clients with excellent calculators and tools to support their retirement goals or help them make decisions regarding Roth conversions.
4Interactive Brokers
Fees: $0 per trade
Account minimum: $0
Promotion: None. There is currently no available promotion.
Pros
- Large selection of investments
- Strong tools and research.
- Over 17,000 mutual funds with no transaction fees.
- Users of NerdWallet who sign up for IBKR pro receive a 0.25 percentage point margin rate reduction.
Cons
- The website is challenging to use.
Why you’ll like it
Customer service representatives from Interactive Brokers are available by phone, email, or chat twenty-four hours a day, seven days a week. The broker lacks any physical locations, like a few others on this list.
Beginner traders have a lot to be thrilled about when it comes to educational resources, especially if they prefer guided learning. Trader’s Academy, which has 55 in-depth online courses, as well as a ton of learning laboratories and webinars on a range of investing topics are all available through Interactive Brokers’ own IBKR campus, which is open to anybody interested in taking online lessons.
5TD Ameritrade
Fees: $0 per trade
Account minimum: $0
Promotion: None. There is currently no available promotion.
Pros
- Trades in stocks and etfs are commission-free.
- Free investigation
- Superior trading platforms.
- No minimum balance is required.
- Excellent customer service.
- Large selection of investments
Cons
- Not any fractional shares.
Why you’ll like it
With top-notch trading tools, zero costs on online stock and ETF trades, and a wide range of mutual funds, TD Ameritrade caters to the needs of both experienced investors and new investors.
It’s practically difficult not to contact TD Ameritrade. Customers can contact us by phone, text, fax, live chat, or email around-the-clock. Additionally, TD provides mobile screen-sharing and direct chat on social media.
Those who require in-person assistance might arrange a meeting at a nearby branch. New investors can take advantage of a wealth of tools, including 150 live branch events each year, instructional webcasts, webinars, and workshops.